Business class buildings prevail in primary housing market of Kyiv in 2019 – expert
The supply in the primary housing market of Kyiv in 2019 decreased by 10% compared to 2018 (but still 40% more than in 2014), to 225 residential complexes for sale, the share of business and comfort class housing is raising, while single new projects appear in economy class.
"In recent years, there has been a tendency to reduce the number of objects brought to the market. So, in 2019 sales began in 42 new housing estates with a total number of apartments being 24,500. At the same time, the largest number of them (50%) are positioned as business class (21), comfort class ranks second (17), and only three new residential complexes appeared in the economy class sector. In addition, the number of apartments announced for construction decreased in 2019," Olena Shirina, the analyst of City One Development, a full-cycle development company, told the Interfax-Ukraine agency.
According to her, the share of comfort class in 2019 increased to 38% from 34% in 2018, ranking first, and the share of economy class fell to 20% from 29%, business class rose to 34% with 28%.
For comparison, in 2014 objects were divided into classes as follows: economy with 46%, comfort with 5%, business with 36%, premium and elite with 12%, according to City One Development.
According to the developer, the average starting price in the market in 2019 increased significantly and amounted to $1,245 per sq m, while in 2018 it was at the level of $931/sq m.
Moreover, every fourth new complex (ten in total) was commissioned in Pechersky district, where the highest price at the start was $1,823/sq m. In general, the average market price for 2019 rose by 22% in dollar terms, to $1,468/sq m.
City One Development is a full-cycle development company that provides a full range of services in the field of creation and development of real estate objects.